NAFTA trade decline extends into 19th month in July

The total value of cross-border freight between the United States and North American trading partners Canada and Mexico slipped another 6.4 percent year-over-year in June 2016, according to the Bureau of Transportation Statistics.    The total value of cross-border trade between the United States and its partners in the North American Free Trade Agreement (NAFTA), which include Canada and Mexico, declined for the 19th consecutive month in July 2016.
   NAFTA freight value for the month dropped 10 percent to $83.7 billion compared with July 2015 after falling 6.4 percent year-over-year in June, according to the U.S. Department of Transportation’s Bureau of Transportation Statistics (BTS).
   BTS noted total cross-border trade values have now fallen in each of the last 19 months compared with the same month the previous year, and the July figures represent the lowest monthly amount since February 2011.
   Of the five major transportation modes measured by the BTS, only rail carriers moved more freight by value in July, ticking up just 0.9 percent, primarily driven by a 14 percent jump in the value of automobiles and parts trade with Mexico.
   The value of cargo moving by all other modes dropped, however, with commodities moving by air slipping 6.4 percent, truck falling 8.8 percent, ocean vessel trade tumbling 25.1 percent, and pipeline down 26.9 percent from the previous year. BTS attributed the decline in freight value for these modes primarily to the precipitous drop in crude oil prices and volumes over the past year.
   Trucks continued to be the most heavily utilized mode for moving goods to and from both Canada and Mexico, accounting for 64.7 percent ($27.8 billion) of the $44.6 billion in U.S. imports from Canada and Mexico during the month and 67.4 percent ($26.4 billion) of the $39.1 billion in exports, BTS said.
   Rail remained the second largest mode by value, moving 15.4 percent of all U.S.-NAFTA freight, followed by vessel (6.1 percent), pipeline (4.9 percent) and air (4 percent).
   Year-over-year, the value of U.S.-Canada freight flows fell 10.7 percent to $42.4 billion in July, while U.S.-Mexico trade values slipped 9.2 percent to $41.3 billion.
   BTS said lower crude oil prices contributed significantly to the decrease in the value of freight moved between the U.S. and both of its North American trading partners.